Italtile’s share price gained almost 4 percent on the JSE after the group revised its earnings up for the six months to end December.

The manufacturer, franchisor and retailer of tiles, bathroom-ware and other related home-finishing products said in its second trading update that it expected its headline earnings per share (Heps) to increase by between 33 and 43 percent, to be between 73.5 cents a share and 79.1c compared to 55.3c reported last year.

The group’s retail sales include those reported by brands such as CTM, Italtile Retail, TopT and U-Light and are represented through a network of 198 stores, including six webstores.

Its manufacturing sales include those reported by Ceramic Industries and Ezee Tile Adhesive Manufacturers.

Its earnings per share (Eps) was expected to increase by between 35 and 45 percent, to be between 74.7c and 80.2c, up from last year’s Eps of 55.3c.

The group’s adjusted Eps and adjusted Heps were expected to increase by between 27 and 37 percent and by 25 and 35 percent respectively, after taking into consideration a once-off charge of R39 million related to the Broad-based Black Economic Empowerment transaction concluded with Yard Investment Holdings announced in September 2019.

In the first trading update released at the beginning of December, Italtile expected its Heps and Eps to increase by more than 20 percent in the first trading update released at the beginning of December.

The share price gained momentum after the expected improvement in earnings and climbed to a day high of R16.50 on the JSE, up from Wednesday’s closing price of R15.76.
However, the shares closed at R16 yesterday.

In the group’s last results for the year to end June, the group reported a 7 percent decline in its total system-wide turnover to R9.3 billion and retail store turnover declined 3.9 percent, with average selling price inflation estimated at 1.4 percent.

However, like-for-like retail store turnover, excluding sales of stores opened and closed during the period, decreased by 6.2 percent.
The lockdown had a negative impact in its year results as before the lockdown period up to March 27, retail store sales were up by 5.4 percent year-on-year and during the lockdown only marginal sales were recorded in April.

The group will release its half-year results on February 11.

Source: www.iol.co.za